Originally written by Timothy Adler on Small Business
The government is pushing to change employment law to encourage a “wave of startups” across Britain.
The business department today launched two consultations: one looking to reform the use of non-compete clauses, which prevent individuals from starting up a competing business after they leave a position; the other enabling low-paid workers to work elsewhere rather than being tied to just one employer.
The Department for Business, Energy and Industrial Strategy (Beis) said the reform of the use of non-compete clauses would ensure talented individuals would unleash “a wave of new start-ups across the country”.
>See also: 8 legal considerations for setting up a business during the pandemic
If an employer does want to tie an individual into a non-compete clause, restricting them from starting a business within their expert field, then they would have to compensate them financially.
The government is also seeking views on whether it is necessary to go further and ban non-compete clauses altogether.
The move to liberate staff from non-compete clauses in employment law is squarely aimed at workers in technology and legal sectors who want to launch their own startups.
Other countries have also restricted exclusivity clauses in order to stimulate innovation, including Germany and